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Author: Hyperon Chain Published: May 29, 2022 Updated: Oct 27, 2023
HyperonSwap is a decentralized exchange (DEX) operating on the Hyperon Blockchain, enabling users to engage in free trading without the involvement of banks or intermediaries. The primary currency on the Hyperon Blockchain is HPN, and users have the ability to exchange HPN for well-known cryptocurrencies such as BTC, ETH, BNB, USDT, and others on HyperonSwap.
A decentralized exchange (DEX) is a peer-to-peer marketplace where crypto transactions occur directly between traders. DEXs embody one of the fundamental principles of cryptocurrency by facilitating financial transactions without the need for banks, brokers, or other intermediaries.
In contrast to centralized exchanges like Binance and Coinbase, DEXs do not support the exchange of fiat currency for cryptocurrencies. Instead, they exclusively trade cryptocurrency tokens for other cryptocurrency tokens. Through a centralized exchange (CEX), you can trade fiat for crypto or crypto-to-crypto pairs, and often engage in more advanced activities like margin trading or setting limit orders. These transactions are typically managed by the exchange itself using an "order book" to determine cryptocurrency prices based on current buy and sell orders, similar to the method used by stock exchanges such as Nasdaq.
Decentralized exchanges, on the other hand, operate as a set of smart contracts. They autonomously determine cryptocurrency prices and utilize "liquidity pools," where investors lock their funds in exchange for interest-like rewards, to facilitate trades.
While transactions on a centralized exchange are recorded within the exchange's internal database, DEX transactions are settled directly on the blockchain.